Latin America is a region ripe for luxury cruise growth and Brazil and Mexico are definitely the region's powerhouse economies, according to Ellen Bettridge, president of the Americas, Silversea Cruises (www.silverseacruises.com).
Speaking on a luxury cruise panel at the recent Cruise Shipping Miami conference in Miami Beach, FL, she tackled the cruising topics: What are you doing down there? How do you work down there? And, how do you grow your business down there?
A Latin Initiative
Bettridge described potential Latin American cruisers as “seekers of history and adventure, and they want to get out there – so our ships are perfect for them… our brand is,” she emphasized.
Becoming known to consumers is all about building-block steps, she said. First, the lines must introduce themselves.
Several mass-market brands, including Royal Caribbean International, have done just that, so from the luxury segment, “now it’s our opportunity to go down there and to build our relationships down there with all of our travel partners and our customers,” said Bettridge.
She cited the importance of differentiating brands, developing customer loyalty and relying on partnerships in the marketplace to build sales.
How would she describe Latin American clients in terms of their vacation mindset? “They love to all travel together, and in a big way," Bettridge said, noting that it’s not uncommon to find 10 to 15 people traveling together.
In addition, “they like to celebrate,” she said, and that often means celebrating together.
Family and friends might attend a big international event, such as the Grand Prix of Monaco. Bettridge said it’s not unusual for 23 to 25 people to travel at the same time: “It becomes a vacation and also an adventure.”
Speaking of her own line, Bettridge said that with Silversea’s seven small vessels, its service and the fact that Latin Americans “love to all travel together… it’s perfect for them."
One sales tip? “They like to book last-minute,” Bettridge noted.
Brazil's Robust Economy
Latin America's largest economy is that of Brazil. Nearly 11 percent of the population of 190 million are considered high-income; they're potential luxury cruisers.
Bettridge noted that Dilma Rousseff, Brazil’s first female president, has an approval rating of 76 percent. Right now, Brazilians feel good about their country, which is posting a 3.5 percent growth rate.
Brazil's economy is the world's seventh largest. It also has 4,900 travel agencies, most in major cities, a sales perk for luxury lines.
One challenge for cruise lines, though, is that Brazil’s currency, the Real, has shown incredible fluctuation over the years.
“One of the things that we’ve found works very well is working with our bank or credit card partners to come up with monthly installment payments for the Latin American marketplace,” says Bettridge. “This helps to drive our sales” and also to stabilize pricing.
While the upper class of Brazil has incredible wealth, Bettridge also noted that the mid-range income consumer segment is also growing at a phenomenal rate.
Yet serving the Latin American market does require some adjustments. “Onboard, our ships, we have to be very flexible,” Bettridge stressed.
For example, cruise lines have to think about menus, make sure they’re available in Portuguese or Spanish, not just English. Restaurants also must adapt in terms of hours – staying open later at night and serving breakfast later.
In addition, “you have to make sure nightclubs are open late at night,” says Bettridge, noting these are all things that must evolve to support Latin American customers.
Focusing on Mexico
Overall, “I’m very excited about Mexico,” Bettridge said. “The opportunities are endless. They’re amazing to work with.”
Bettridge said the election of new President Enrique Pena is helping stabilize Mexico’s economy, the world’s 14th largest.
Seven percent of the country’s 112 million people are high-end consumers. And more than 1,000 travel agencies operate within the country to support cruise line sales efforts.
As the Mexican currency, the Peso, fluctuates a lot, Silversea also has partnered with credit card companies in Mexico to provide consumers with payment options; that's working well, according to Bettridge.
While the economy is beginning to stabilize, “a big challenge for them is air lift,” she acknowledged. Flights typically go through the hub of Mexico City with connections required to many other destinations and port cities.
So, if you’re promoting in this market, it’s important to think about how to get the clients where they need to go. But partners will work hard to support cruise lines, she believes.
“They’re also about partnerships, more even so than Brazil," said Bettridge. "They grab a partner, they work with a partner and they support you. A handshake does mean something.”
Advertising too is critical when it comes to wooing Latin Americans in their home countries, she said.
While Brazil and Mexico are the economic powerhouses, Latin America has other countries also expected to see cruise growth.
Bettridge cited Chile, Colombia, Panama and Venezuela: "All have incredible potential and show a lot of love to the cruising market."